MCM will revert to old system of procurement, says Weber
MCM will revert to old system of procurement, says WeberBy Fridah Zinyama
Tuesday May 15, 2007 [08:38]
Mopani Copper Mines (MCM) Supplies Manager Tony Weber has said MCM would revert to the old system of procurement if President Levy Mwanawasa has ordered it. And Quadrem Company representative Francis Makayi-Mateyo said the President had been been misinformed. Responding to the order by President Mwanawasa for MCM to find another procurement system that would be satisfactory to both the mine and the mine suppliers, Weber said they would try to find a better way to resolve this problem.
"The Quadrem system was meant to help the local Zambian suppliers to the mines. There was nothing sinister about our company coming up with this innovation, it was meant to help eradicate corrupt practices that had characterised the procurement system at times."
He explained that the procurement system that MCM was proposing to introduce would have been operating in agreement with the Mines Suppliers and Contractors Association. "Our intention was to come up with recognised suppliers that we would have been dealing with over a long period of time," Weber explained.
He further stated that the system was set in South Africa but would be operated locally.
"The system was going to have a database of all the registered suppliers whom we have been dealing with, and when we need suppliers we would inform the suppliers to tender their applications for the specific supplies that we needed," Weber said.
He added that the system was also meant to help the mining company to improve efficiency in the way it had been handling its supplies. "I have been working with the local suppliers for about four and a half years, and they have been a priority for me," Weber said. "I have only dealt with foreign suppliers in exceptional instances."
He said MCM was committed to working with Zambian suppliers and that trust was important in the kind of business they dealt in.
And Mateyo said if the President was to make a decisive decision over this issue he should be adequately informed. "I propose that the President meets all stakeholders involved; the Pressure group, Mine Suppliers, and the mining company and Quadrem should present their case before the President," Mateyo said.
He said after the parties involved met and presented their case, the President would be in a better position to make his decision on the matter.
Meanwhile, Mines Suppliers and Contractors Association president Fanwell Banda said they were in no position to make a comment over President Mwamawasa's statement as they were preparing a report for the minister.
Banda said the report the association was preparing for the minister explained why Mopani had decided to come up with this system.
"In 2003, when Mopani started dealing with the local suppliers one problem we had with them was lack of transparency. As an association we requested Mopani to come up with a procurement system that would be transparent and satisfy the local suppliers," Banda explained. "This is how Mopani came up with the Quadrem system."
He said Mopani announced that they were about to introduce a procurement system called Quadrem and were going to present to the suppliers how the system would work.
"But when the members heard that Mopani was about to introduce this system, they were against it even before giving the company chance to try it to explain how it would operate once implemented," Banda said.
However, Banda admitted that once introduced the system would pose a challenge to the local suppliers, as some of them did not have access to computers as the system would entail using the internet.
"The local suppliers were also expected to pay a commission for using the system," Banda said.
He added that the association thought it would also be inappropriate to have a foreign company introducing this system and the association realised that they would rather have a local company introduce this system.
"Engaging a foreign company would appear retrogressive so we suggested that a Zambian company does the work," Banda said.
Last week, President Mwanawasa ordered Mopani Copper Mines to find another procurement system that would satisfy local business partners as opposed to the Quadrem arrangement it proposes to introduce.
President Mwanawasa said he would not support any procurement system that the local people were against.
"If my people don't want the system, I also don't want it. If the people are apprehensive, then I am demanding that they find another system that will be satisfactory to both parties," he ordered.
President Mwanawasa observed that the Mine Suppliers and Contractors Association had complained against the tender procedures to be introduced at MCM.
Earlier before President Mwanawasa's directive, MCM chief executive officer, Tim Henderson, appealed to mine suppliers on the Copperbelt to receive the Quadrem procurement system with enthusiasm, as it was an attempt by the mining company to be transparent in its business dealings.
Henderson said genuine and honest Zambian suppliers should not fear the quadrem system as it was aimed at removing corrupt practices in the procurement process.
Under the quadrem system, local businessmen would be receiving orders and enquires from South Africa via the Internet.
posted by MrK @ 9:15 PM
1 Comments:
While I am all for globalization but the idea of orders being generated in South africa doesn't sound good for any Zambian.
What is so difficult about setting up a system locally that will help develop Zambia and Zambians and at the same time introduce standards.
I know from experience that FQM from inception came with a lot of corrupt practises where all procurement was being done in South Africa and restricted only to our white friends. Some may recall these guys operating out of the former Nkana Flats in Kitwe. Many muzungus made a killing out of this.
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